The local currency continued its dip against the US dollar in the official market on Thursday, May 30.
Data by the official from FMDQ securities showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official market showed that the naira closed at N1484.75 to a dollar.
This is a significant loss compared to the N1329.65/$ it closed on Wednesday, May 29, 2024.
The amount represents an 11.7% decline or N155/$ within 24 hours, depicting the futility of the recent efforts by the CBN.
Dollars supplied by interested sellers and ready purchasers fell by 30.05% on Thursday, from $336.54 million on Wednesday to $235.41 million.
According to the FX auction summary, the intraday high closed at N1,520 per dollar on Thursday, down from the stated N1,506/$1 on Wednesday.
Additionally, the intraday low dropped to N1,100, which was less than the N1,010 that was traded on Wednesday.
On Thursday, the naira ended the day at N1,480, unchanged at the parallel market, sometimes referred to as the black market.
The Central Bank of Nigeria’s (CBN) policies and interventions have not stopped the local currency’s depreciation in the foreign exchange market.
Torizone reported that in the nine months from January to September 2023, the Central Bank of Nigeria’s dollar supply for overseas medical and educational costs increased by 49.22% to $1.81 billion.
According to CBN data, Nigeria spent somewhat more on international education and health-related concerns abroad in 2023-$1.81 billion compared to $1.76 billion spent at the same time in 2022.
Report shows a drop in forex demand
Torizone reported that the demand for foreign exchange by individuals and companies engaged in importation and other forex-related activities decreased by 42% year-on-year.
The total sectoral utilization of foreign exchange indicated that 19 sectors and services received $21.12 billion in forex allocations in 2023.
This amount represents a 41.9% decline, or $8.87 billion, compared to the $29.98 billion allocated in 2022.
